Proposal for a Council Regulation on the common organisation of the market in seeds
Date: 2005-08-24
Institutions: European Commission
Subjects: cereals, common organisation of markets, leguminous vegetable, oleaginous plant, rice, seed

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 24.8.2005 
COM(2005) 384 final 

2005/0164 (CNS) 

Proposal for a 

COUNCIL REGULATION 

on the common organisation of the market in seeds 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

Council  Regulation  (EEC)  No  2358/71  on  the  common  organisation  of  the  market  in  seeds 
and  the  CN  codes  of  products  falling  within  the  scope  of  that  common  market  organisation 
have undergone a number  of  substantial amendments. In view of those amendments and, in 
particular,  those  introduced  under  Council  Regulation  (EC)  No 1782/2003  establishing 
common  rules  for  direct  support  schemes  under  the  common  agricultural  policy  and 
establishing  certain  support  schemes  for  farmers,  that  Regulation  should  be  repealed  and 
replaced  by  a  new  Regulation  in  the  interests  of  clarity  and  a  proper  understanding  of 
Community legislation. 

The  provisions  of  Council  Regulation  (EEC)  No  1674/72  laying  down  general  rules  for 
granting  and  financing  aid  for  seed  were  incorporated  into  the  implementing  rules  provided 
for  in  Chapter  10  of  Commission  Regulation  (EC)  No 1973/2004.  Council  Regulation  (EC) 
No 1674/72 should therefore be repealed. 

The import licence scheme has been made uniform for all seed imports and, at the same time, 
has  been  streamlined  in  that  there  are  no  longer  exemptions  for  duly  registered  growing 
contracts in third countries. 

The provisions on the granting of national aid by Finland on account of its specific climatic 
conditions have been retained and the Commission will transmit a report to the Council on the 
results of this aid by 1 January 2006. 

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2005/0164 (CNS) 

Proposal for a 

COUNCIL REGULATION 

on the common organisation of the market in seeds 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  establishing  the  European  Community,  and  in  particular 
Article 36 and the third subparagraph of Article 37(2) thereof, 

Having regard to the proposal from the Commission, 

Having regard to the opinion of the European Parliament, 

Having regard to the opinion of the European Economic and Social Committee, 

Whereas: 

(1) 

(2) 

(3) 

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2 

3 

The operation and development of the common market in agricultural products must 
be  accompanied  by  the  establishment  of  a  common  agricultural  policy  to  include,  in 
particular, a common organisation of the agricultural markets which may take various 
forms depending on the product concerned. 

Council  Regulation  (EEC)  No  2358/71  of  26  October  1971  on  the  common 
organisation  of  the  market  in  seeds1  has  been  substantially  amended  several  times, 
particularly by Council Regulation (EC) No 1782/2003 establishing common rules for 
direct support schemes under the common agricultural policy and establishing certain 
support schemes for farmers and amending Regulations (EEC) No 2019/93, (EC) No 
1452/2001,  (EC)  No  1453/2001,  (EC)  No  1454/2001,  (EC)  1868/94,  (EC)  No 
1251/1999, (EC) No 1254/1999, (EC) No 1673/2000, (EEC) No 2358/71 and (EC) No 
2529/20012. In the interests of clarity, Regulation (EC) No 2358/71 should be repealed 
and replaced by a new Regulation. 

The  provisions  of  Regulation  (EEC)  No  1674/72  laying  down  general  rules  for 
granting and financing aid for seed3 were incorporated into the implementing rules in 
Chapter 10 of Commission Regulation (EC) No 1973/2004 of 29 October 2004 laying 
down detailed rules for the application of Council Regulation (EC) No 1782/2003 as 
regards the support schemes provided for in Titles IV and IVa of that Regulation and 

OJ L 246, 5.11.1971, p. 1. Regulation as last amended by Regulation (EC) No 1782/2003 (OJ L 270, 
21.10.2003, p. 1).  
(See footnote 4.) Regulation as last amended by Commission Regulation (EC) No 118/2005 (OJ L 24, 
27.1.2005, p. 15). 
OJ  L  177,  4.8.1972,  p.  1.  Regulation  as  last  amended  by  Regulation  (EEC)  No  3795/85  (OJ  L  367, 
31.12.1985, p. 21). 

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the  use  of  land  set  aside  for  the  production  of  raw  materials4.  Regulation  (EC)  No 
1674/72 should therefore be repealed. 

In order to monitor the volume of trade in seeds with third countries, provision should 
be made for an import licence scheme with the lodging of a security to ensure that the 
transactions for which such licences are requested are effected. 

The  system  of  customs  duties  makes  it  possible to dispense with  all other protective 
measures in the case of goods imported from third countries. 

The internal market and customs duty mechanism could, in exceptional circumstances, 
prove  inadequate.  In  such  cases,  so  as  not  to  leave  the  Community  market  without 
defence against disturbances that might ensue, the Community should be able to take 
all  necessary  measures  without  delay.  Those  measures  must  comply  with  the 
Community's international obligations. 

The proper working of the single market in seeds would be jeopardised by the granting 
of  national  aid.  The  provisions  of  the  Treaty  governing  state  aid  should,  therefore, 
apply  to  the  products  covered  by  this  common  market  organisation.  However,  since 
accession, Finland has been able, subject to authorisation by the Commission, to grant 
aid  for  certain  quantities  of  seeds  and  cereal  seeds  produced  solely  in  Finland  on 
account of its specific climatic conditions. 

Since the common market in seeds is constantly evolving, the Member States and the 
Commission  should  keep  each  other  supplied  with 
to 
developments in this area. 

information  relevant 

The measures required to implement this Regulation should be adopted in accordance 
with Council Decision 1999/468/EC of 28 June 1999 laying down the procedures for 
the exercise of implementing powers conferred on the Commission5, 

(4) 

(5) 

(6) 

(7) 

(8) 

(9) 

HAS ADOPTED THIS REGULATION: 

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OJ L 345, 20.11.2004, p. 1. Regulation as last amended by Regulation (EC) No 794/2005 (OJ L 134, 
27.5.2005, p. 6). 
OJ L 184, 17.7.1999, p. 23.  

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CHAPTER I 

INTRODUCTORY PROVISIONS 

Article 1 

A  common  organisation  of  the  market  in  seeds  shall  be  established  and  shall  cover  the 
following products: 

CN Code 

Description of goods 

0712 90 11 

0713 10 10 

ex 0713 20 00 
ex 0713 31 00 

ex 0713 32 00 

0713 33 10 

ex 0713 39 00 
ex 0713 40 00 
ex 0713 50 00 

ex 0713 90 00 

1001 90 10 

ex 1005 10 

1006 10 10 

1007 00 10 

1201 00 10 

1202 10 10 

1204 00 10 

1205 10 10 

1206 00 10 

ex 1207  

1209 

Sweetcorn hybrids for sowing 

Peas (Pisum sativum) for sowing 

Chickpeas for sowing 

Beans  of  the  species  Vigna  mungo  (L.)  Hepper  or  Vigna  radiata  (L.) 
Wilczek for sowing 
Small red (Adzuki) beans (Phaseolus or Vigna angularis) for sowing 
Kidney beans, including white pea beans (Phaseolus vulgaris) for sowing 

Other beans for sowing 
Lentils for sowing 

Broad  beans  (Vicia  faba  var.  major)  and  horse  beans  (Vicia  faba  var. 
equina, Vicia faba var. minor) 
Other dried leguminous vegetables for sowing 
Spelt for sowing 

Hybrid maize (corn) seed 
Rice in the husk (paddy or rough) for sowing 

Grain sorghum hybrids for sowing 

Soya beans, whether or not broken, for sowing 

Groundnuts, not roasted or otherwise cooked, in shell, for sowing 

Linseed, whether or not broken, for sowing 

Rape or colza seeds, whether or not broken, for sowing 

Sunflower seeds, whether or not broken, for sowing 

Other oil seeds and oleaginous fruits, whether or not broken, for sowing 
Seeds, fruit and spores, of a kind used for sowing 

Article 2 

The  marketing  year  for  seeds  shall  begin  on  1  July  of  each  year  and  end  on  30  June  of  the 
following year. 

This  Regulation  shall  apply  without  prejudice  to  the  measures  provided  for  by  Council 
Regulation (EC) No 1782/2003. 

Article 3 

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CHAPTER II 

TRADE WITH THIRD COUNTRIES 

Article 4 

1. 

2. 

3. 

Imports into the Community of any of the products listed in Article 1 may be subject 
to the presentation of an import licence. The products for which import licences are 
required  shall  be  determined  in  accordance  with  the  procedure  referred  to  in 
Article 10(2).  

Import licences shall be issued by the Member States to any persons who so request, 
irrespective of their place of establishment in the Community. 

Licences  shall  be  valid  for  imports  carried  out  anywhere  in  the  Community.  Their 
issue shall be subject to the lodging of a security guaranteeing that the products are 
imported during the validity period of the licence. Except in cases of force majeure, 
the security shall be forfeited in whole or in part if the transaction is not carried out, 
or is carried out only partially, within that period. 

Article 5 

Unless this Regulation provides otherwise, the Common Customs Tariff duty rates shall apply 
to the products listed in Article 1. 

1. 

2. 

1. 

2. 

Article 6 

The  general  rules  for  the  interpretation  of  the  Combined  Nomenclature  and  the 
detailed  rules  for  its  application  shall  apply  to  the  tariff  classification  of  products 
referred to in Article 1. The tariff nomenclature resulting from the application of this 
Regulation shall be included in the Common Customs Tariff. 

Save  as  otherwise  provided  in  this  Regulation  or  in  provisions  adopted  pursuant 
thereto, the following shall be prohibited in trade with third countries: 

(a) 

the levying of any charge having equivalent effect to a customs duty, 

(b) 

the  application  of  any  quantitative  restriction  or  measure  having  equivalent 
effect. 

Article 7 

If,  by  reason  of  imports  or  exports,  the  Community  market  in  one  or  more  of  the 
products listed in Article 1 is affected by, or is threatened with, serious disturbance 
likely  to  jeopardise  the  achievement  of  the  objectives  set  out  in  Article  33  of  the 
Treaty, appropriate measures may be applied in trade with non-member countries of 
the World Trade Organisation until such disturbance or threat of it has ceased. 

If the situation referred to in paragraph 1 arises, the Commission shall, at the request 
of a Member State or on its own initiative, decide upon the necessary measures. The 

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3. 

4. 

1. 

2. 

Member  States  shall  be  notified  of  such  measures,  which  shall  be  immediately 
applicable. If the Commission receives a request from a Member State, it shall take a 
decision thereon within three working days following receipt of the request. 

The  measures  mentioned  in  paragraph 2  may  be  referred  to  the  Council  by  any 
Member State within three working days of the day on which they are notified. The 
Council  shall  meet  immediately.  It  may,  acting  by  a  qualified  majority,  amend  or 
repeal the measures in question within one month of the day on which the measures 
were referred to it. 

Arrangements adopted under this Article shall take account of the obligations arising 
from agreements concluded in accordance with Article 300(2) of the Treaty. 

CHAPTER III 

GENERAL PROVISIONS 

Article 8 

Save as otherwise provided in this Regulation, Articles 87, 88 and 89 of the Treaty 
shall apply to the production of, and trade in, the products listed in Article 1 of this 
Regulation. 

However,  since  accession,  Finland  has  been  able,  subject  to  authorisation  by  the 
Commission,  to  grant  aid  for  certain  quantities  of  seeds  and  certain  quantities  of 
cereal seeds produced solely in Finland on account of its specific climatic conditions. 

Prior to 1 January 2006, the Commission shall transmit to the Council, on the basis 
of the information supplied in due time by Finland, a report on the results of the aid 
authorised, accompanied by the necessary proposals. 

Article 9 

The  Member  States  and  the  Commission  shall  communicate  to  each  other  the  information 
necessary for implementing this Regulation. 

Article 10 

1. 

2. 

The  Commission  shall  be  assisted  by  the  Management  Committee  on  Seeds 
(hereinafter referred to as "the Committee"). 

Where reference is made to this Article, Articles 4 and 7 of Decision 1999/468/EC 
shall apply. 

The period provided for in Article 4(3) of Decision 1999/468/EC shall be set at one 
month. 

3. 

The Committee shall adopt its Rules of Procedure. 

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Article 11 

Detailed rules on the application of this Regulation, and in particular the validity period of the 
licences  referred  to  in  Article 4  and  the  arrangements  for  communicating  the  information 
referred  to  in  Article  9,  shall  be  adopted  in  accordance  with  the  procedure  laid  down  in 
Article 10(2). 

CHAPTER IV 

TRANSITIONAL AND FINAL PROVISIONS 

Article 12 

1. 

2. 

Regulations (EEC) Nos 2358/71 and 1674/72 are hereby repealed. 

References to Regulation (EEC) No 2358/71 shall be construed as references to this 
Regulation and shall be read in accordance with the correlation table in the Annex. 

Article 13 

This  Regulation  shall  enter  into  force  on  the  seventh  day  following  its  publication  in  the 
Official Journal of the European Union. 

It shall apply from 1 July 2006. 

This Regulation shall be binding in its entirety and directly applicable in all Member States. 

Brussels, 

For the Council 
The President 

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ANNEX 

Correlation table 

Regulation (EEC) No 2358/71 

This Regulation 

Article 1 
Article 2 
– 
Article 3 
Article 3a 
Article 4(1) and (2), first sentence 

Article 4(2), second subparagraph 
Article 5(1) 
Article 5(2) and Article 6 
Article 7 
Article 8 
Article 9, first sentence 
Article 9, second sentence 
Article 11 
Article 12 
Article 13 
Article 14 
Article 15 
Article 16 
– 
Article 17 

Article 1 
Article 2 
Article 3 
– 
– 
Article 4 

Article 11 
Article 5 
Article 6 
Article 7 
Article 8 
Article 9 
Article 11 
Article 10 
– 
– 
– 
– 
– 
Article 12 
Article 13 

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1. 

2. 

3. 

4. 

5. 

5.0 

FINANCIAL STATEMENT 

DATE: 
APPROPRIATIONS: 
110 Mio € 

BUDGET HEADING: 
05 02 11 02 
TITLE: 
Proposal for a Council Regulation on the common organisation of the market in seeds 
LEGAL BASIS: 
Article 37 of the Treaty 
AIMS: 
Repealing and modifying Regulation (EEC) n° 2358/71 following the reform in the seeds sector 
established by Regulation (EC) n° 1782/2003 
FINANCIAL IMPLICATIONS 

12 MONTH 
PERIOD 

CURRENT 
FINANCIAL 
YEAR 
2005 
(EUR million) 
- 

FOLLOWING 
FINANCIAL 
YEAR 
2006 
(EUR million) 
- 

CHARGED TO THE EC BUDGET 

EXPENDITURE 
- 
(REFUNDS/INTERVENTIONS) 
- 
- 

NATIONAL AUTHORITIES 
OTHER 

(EUR million) 
- 

5.1  REVENUE 

- 

- 

- 

OWN RESOURCES OF THE EC  

- 
(LEVIES/CUSTOMS DUTIES) 
NATIONAL 
- 

5.0.1  ESTIMATED EXPENDITURE 
5.1.1  ESTIMATED REVENUE 
5.2  METHOD OF CALCULATION: 

2007 
- 
- 

2008 
- 
- 

2009 
- 
- 

2010 
- 
- 

6.0  CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE 

RELEVANT CHAPTER OF THE CURRENT BUDGET? 

6.1  CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF 

THE CURRENT BUDGET? 

6.2  WILL A SUPPLEMENTARY BUDGET BE NECESSARY? 
6.3  WILL APPROPRIATIONS NEED TO BE ENTERED IN FUTURE BUDGETS? 
OBSERVATIONS: 

YES NO 

YES NO 
YES NO 
YES NO 

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